Badge 7: Idea Parkers
AgXtend is an ag leasing fund that leases land and equipment to landless youth and women to boost ag productivity for food security.
Namu's family sold their 2-acre plot of land to take her through school, hoping she would buy another piece of family land once she gets a job. 3 years after graduation, Namu is still unemployed & her family is chronically food insecure because they have no land to farm.After hearing a radio commercial, Namu, with 4 former classmates, registers with AgXtend. They are trained on the sesame value chain, a crop known to thrive in Lira, her home district.The group is then granted a lease on a 3-acre piece of land, and given relevant ag inputs and machine services.Through AgXtend-mediated produce sales, the group makes lease, inputs and service repayments, and work towards owning the land outright. They may acquire machines via hire purchase, thereby becoming independent businesses.
Developing countries are faced with the dual problem of youth unemployment and shrinking agricultural productivity to feed their rapidly growing populations.Unlike other actors in the ag finance space that provide security-backed products, our work aims to empower resource-poor young people with the tools they need to be entrepreneurial, without imposing any barriers to entry.By availing all the necessary factors of production on a closely monitored lease model, we ensure that our solution is accessible to every young person that's able and willing to work. Our business model is highly scalable and capable of being adopted in any part of the world.
We purchase long term leases on idle land which, in turn, we lease to our clients for shorter periods. We also provide them with in-kind loans in form of ag inputs and machinery services to increase productivity.After targeted training in agricultural production and financial management, clients are able to repay their low-interest leases and loans directly from produce sales revenue.We monitor our clients at every stage from sowing through harvesting, marketing and mediating produce sales.This close collaboration ensures clients get support when they need it, but also minimizes the possibility of default. We are able to grow off of our clients' interest payments, as well as expanding our offerings and client base.
We seek to establish a landless youth agricultural business fund to support youth groups in getting access to arable land and mechanization tools, as well as matching local and international markets.
AgXtend was conceived out of concern arising from rapidly increasing youth unemployment and dwindling agricultural productivity. Briefly, we are looking to establish a in-kind loan fund and shared agricultural equipment pool that will be available to vetted youth groups consisting at least 10 members. The fund will be used to acquire season-long leases on unused arable land that will be allocated to youth groups. The groups will also have access to relevant equipment, customized agricultural extension services as well as local and export market information. Payment for services extended (plus a modest mark up) will be deducted after the produce has been aggregated and sold successfully. This way, we will generate income for our company, gainful employment for youth group members, as well as additional income for farrow landowners.